The outbreak of coronavirus COVID-19 has sent shockwaves around the world. In China, the origin country in which over two thousand people have died and almost 80,000 people are known to have been infected, that impact has been stark. Images of empty streets and vacant malls paint a picture of the huge social and economic impact COVID-19 has had on this global powerhouse.
China’s efforts to curb the disease are staggering in their scope. Yet equally far-reaching will be the economic effects of the national shutdown enforced in an attempt to halt the virus’ progress. With China’s considerable position in the global economic landscape, alongside further disruption as the virus spreads, that could have a substantial impact on the energy sector.
COVID-19’s Impact on the Energy Sector
Energy is a global market, with supply chains that criss-cross the globe. As the world’s manufacturing powerhouse, and second-largest global economy, China is a lynchpin in that trade. What disrupts China, disrupts the world, and the fallout of coronavirus is already impacting the energy sector.